PROJECT MANAGEMENT :

NETWORK ANALYSIS
(CPM & PERT)
 What is a project?
A project is an interrelated set of activities that has
definite starting and ending points and that result in a
unique product or service
Cuts across organizational lines – they need varied skills of
different profession
Uncertainties like new technology & external environment
can change the character of the project
Personnel, materials, facilities etc. are temporarily
assembled to accomplish a goal within a specified time
frame and then disbanded
Upon finish, a project releases lot of resources which were
engaged in execution of the project
 Example of project
Planning a wedding
Designing and implementing a computer system
Hosting a holiday party
Designing and producing a brochure
Executing an environmental clean-up of a contaminated site
Holding a high school reunion
Performing a series of surgeries on an accident victim
 Definition of project:

A project is a one shot, time limited, goal

directed, major undertaking, requiring the
commitment of varied skills & resources. It
also describes project as a combination of
human and non human resources pooled
together in a temporary organization to
achieve specific purpose
 Project Attributes
A project:
•Has a unique purpose.
•Is temporary.
•Is developed using progressive elaboration.
•Requires resources, often from various areas.
•Should have a primary customer or sponsor.
•The project sponsor usually provides the
direction and funding for the project.
•Involves uncertainty.
 Project and Program Managers
Project managers work with project sponsors, project
teams, and other people involved in projects to meet
project goals.
Program: “A group of related projects managed in a
coordinated way to obtain benefits and control not
available from managing them individually.”*
Program managers oversee programs and often act as
bosses for project managers.
Project management is “the application of
knowledge, skills, tools and techniques to project
activities to meet project requirements.”*
 Project Management Tools and
Techniques
Project management tools and techniques assist project
managers and their teams in various aspects of project
management.
Specific tools and techniques include:
Project charters, scope statements, and WBS (scope).
Gantt charts, network diagrams, critical path
analyses, critical chain scheduling (time).
Cost estimates and earned value management
(cost).
 NETWORK ANALYSIS
Network Analysis refers to a number of techniques for
the planning and control of complex projects.

The two most frequently used forms of network

planning are:
1. Programme Evaluation and Review Technique
(PERT)
2. Critical Path Method (CPM)
 WHAT IS A NETWORK?

A network is a graphical diagram

consisting of certain configuration of “Arrows”
() and “Nodes” () for showing the logical
sequence of various tasks to be performed to
achieve the project objective.
 PERT / CPM Techniques

The initial step in PERT/CPM project

scheduling process is the determination of all
specific activities that comprise the project
and their relationships.
 EXAMPLE
Activity Description
A Obtain the budget
approval
B Obtain the machine
C Hire the operator
D Install the machine
E Train the operator
F Produce the goods
Duration (in Immediate
weeks) predecessor
2 -
5 A
1 A
1 B
6 C
1 D,E
TERMS USED IN A NETWORK

1. Activity: An effort that is required to

complete a part of the project. It is
represented by “”.

2. Node: It represents the beginning or

completion of an activity. It is
represented by “”
RULES OF NETWORK CONSTRUCTION
1. Each defined activity is represented by one
and only one arrow in the network.

2. Before an activity can be undertaken, all

activities preceding it must be completed.

3. The arrows depicting various activities are

indicative of logical procedure only. The
length and bearing of the arrows are of no
significance.
4. The arrow direction indicates the general
progression in time. Head events and Tail events.

5. When a number of activities terminate at one

event, it indicates that no activity emanating from
that event may start unless all activities terminating
there have been completed.

6. Events are identified by numbers.

7. The activities are identified by the numbers of their

starting and ending events or by alphabets.
8. A network should have only one initial and terminal
node.
A
C Merge Event
B

B
A
Burst Event
C
10. Parallel activities between two events, without
intervening events, are prohibited. When two or
more parallel activities in a project have the same
head and tail events, dummy activities are needed in
constructing the network.

Dummy activities do not consume time or

resources. An efficient network contains a
minimum number of dummy activities required to
portray the correct precedence relationships.

11. Looping is not permitted in a network.

 NETWORK SYMBOLS
SYMBOL MEANING
Activity
Event
Activity A must be completed before
Activity B completed
Activities A & B can occur
concurrently, but both must be
completed before activity C can begin
Activities A & B must be completed
before activities C & D can begin, but
C can begin independently of D & vice
versa
SAMPLE NETWORK
DUMMY ACTIVITY
 CRITICAL PATH METHOD

CPM aims at the determination of the

time to complete a project and the
important activities on which a
manager shall focus attention.
 PROCEDURE
 Consider all the paths in a project, beginning with
the start event and stopping at the end event.

 For each path, calculate the time of execution.

 The path with the largest time is called the critical

path and the activities along this path are called
critical activities or bottleneck activities.
THANK YOU